The management accountant at Fuller Manufacturing Company, Dean Witter, is in the process of preparing the cash budget for the business for the quarter ending September 30, 2010. Extracts from the sales and purchases budgets are as follows:

Month	Cash Sales	Sales on Account	Purchases on Account
May	$45000	$480000	$390000
June	$60000	$600000	$360000
July	$38000	$720000	$450000
August	$47000	$640000	$400000
September	$51000	$800000	$500000

i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 60% in the month of sale 20% in the first month following the sale 15% in the second month following the sale The remaining 5% is expected to be uncollectible . ii) Accounts payable are settled as follows: 70% in the month in which the inventory is purchased 30% in the following month The credit terms of the suppliers - 10/30, n60. iii) A motor vehicle costing $350,000 will be purchased and paid for in September 2010. At the same time, an old motor vehicle, which has a net book value of $80,000, will be disposed of at a profit of $60,000. iv) A money market instrument purchased by the company with a face value of $500,000 will mature on July 15, 2010. On that date quarterly interest computed at a rate of 20% per annum will also be collected. v) Fixed operating expenses which accrue evenly throughout the year, are estimated to be $1,500,000 per annum, [including depreciation on non-current assets of $30,000 per month] and is settled monthly. vi) Other operating expenses are expected to be $96,000 per quarter and are settled monthly. vii) Wages and salaries are expected to be $2,160,000 per annum and will be paid monthly. vii) The business has made arrangements with their bankers for a loan of $240,000. The loan is expected to be disbursed in July 2010. viii) Retooling of the production facility at the end of 2009 required new equipment costing $1,500,000 and is being paid for as follows:

January 2010 $200000

April 2010 $500000

July 2010 $450000

October 2010 $350000

ix) The cash balance on June 30, 2010 is expected to be an overdraft of $190,000 Required: (a) Prepare a schedule of budgeted cash collections for sales for each of the months July to September. (b) Prepare a schedule of expected cash disbursements for purchases for the quarter to September 30, 2010. (c) Prepare a cash budget, with a total column, for the quarter ending September 30, 2010, showing the receipts and payments for each month. (d) Given that companies in the industry in which Fuller Manufacturing operates are required to maintain a minimum cash balance of $100,000 each month, advice the management of the company as to two (2) possible steps that may be taken to satisfy this requirement.